-8"start-up" contribution for surveillance, and is to be divided
among the FAS as agreed among those governments.
This section provides for an annual adjustment of
Section 217.
the grants provided under Sections 211, 212, 214, 215 and 231]
(including Sections 212, 213 and 216 funds as referenced therein)
byftwo-thirds of the percentage annual change in the United States
Gross National Product Implicit Price Deflator, or seven percent,
whichever is less.
Section 218.
This section provides that grant funds appropriated
for any year will survive beyond the expiration of that year and
remain available for expenditure without reducing subsequent grant
payments.
Section 219.
This section provides that unobligated Trust
Territory Government funds will remain available to the FAS Governments according to the purposes of the act appropriating such
funds.
Article II,
Section 221.
Program Assistance
While the FAS will fund the basic functions of
government from grant assistance and FAS revenues,
performance of
certain activities may be beyond the capability of the new
governments at the outset of free association.
Thus, the United
States has agreed
in Section 221(a)
to continue to provide
services of the United States Weather Service, the United States
Federal Emergency Management Agency, the United States Postal
Service, the Federal Aviation Administration and the Civil
Aeronautics Board.
Enactment of Section 221(a) by Congress
provides the legislative authority for provision of these
services.
The specific arangements for provisions of these
services are set forth in a separate agreement.
The United States
commitment is expressly limited to continuation of the essential
services specified at levels equivalent to the last year prior to
the effective date of the Compact.
This will establish a ceiling
on the nature and extent of United States programs.
Subsection (b) provides a $10 million annual grant to be
shared by the FAS as follows:
Marshall Islands $3 million; and
FSM $7 million.
This grant funding, coupled with the scholarship
and health service funding set forth in Section 216, will enable
the FAS to augment current account expenditures in the field of
education and health services and tailor such activities as
scholarship programs and medical referral activities to FAS needs.
Subsection (c) provides that alternate energy development
programs which were extended to the Trust Territory will continue
after the effective date of the Compact and be available to the
FAS subject to the terms set forth in United States law with
respect to the scope and duration of such programs.
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